Buying an Apartment: 7 Checks Before Signing the Preliminary Contract
You have found an apartment you like and want to reserve it as soon as possible. Before signing the preliminary contract and paying the deposit, it is worth taking the time to carry out a few checks. They protect your money and shorten the path to getting your keys.
1. Land registry extract
Check who is registered as the owner and whether that is the person selling the property. You can obtain the extract through the e-Izvadak system. If there are several owners, all of them must take part in the sale.
2. Encumbrances and notations
The encumbrances section of the extract shows whether there is a mortgage, a lien or a legal dispute. An encumbrance does not necessarily mean the purchase is impossible, but how it will be removed must be clearly agreed in the preliminary contract.
3. Occupancy permit or decision on legalisation of the existing building
There must be proof that the building was constructed in accordance with regulations. This is also important if you are planning to take out a home loan, as banks routinely require such documentation.
4. Unit registration (etažiranje)
A registered apartment unit has a separate entry in the land registry. If the building has not been divided into registered units, the purchase is more complex and requires extra care.
5. Energy certificate
The seller is obliged to present an energy certificate. Besides being a legal requirement, the certificate gives an approximate picture of heating and cooling costs.
6. Reserve fund and obligations to the building
Ask the building manager whether there are any unpaid obligations and whether major works are planned, such as roof or façade renovation.
7. Deposit and deadlines
In the preliminary contract, clearly specify:
- the amount of the deposit and the method of payment
- the deadline for concluding the main contract
- what happens if one party withdraws
Unclear deadlines are the most common source of misunderstandings.
How we can help
The agents at Imperium Immobiliare check the documentation before we recommend signing a preliminary contract, and we work with lawyers and banks. If you are thinking of buying, get in touch and we will go through every step together.